CBX Weekly Newsletter // 24 June 2020
- Bitcoin sentiment remains Bullish
- PayPal, Venmo to Roll Out Bitcoin buying and Selling (rumor)
- Supply of the USD-backed stablecoin has quadrupled
Bitcoin sentiment remains Bullish
Sentiment for this week continues from last week, with bullish movement expected. This is further encouraged with the strong push on Monday, allowing the day to close above the EMA.
It is also nice to see the trend line supporting prices well in the previous week. Volume and volatility have been on a decline, and last week was no exception. This can indicate a big move soon, with a possible push and sustained price above $10k.
Also fundamentals news will be discussed below support our bias for prices to push above the psychological $10K level. However, we will present as we always do both scenarios which outline both Bullish and Bearish views.
Bullish scenario:
With the Bollinger band tightening indicates that a sharp movement may be near. Players with Bullish mindset can enter long now, around $9500-$9600, ahead of the push. TP1 @$9900 and leave 50% running to take advantage of a bull run. SL @ $9150 level, outside of the Bollinger band or trend line. This would be a relatively low risk strategy/high reward strategy seeing how close we are to the SL and high potential gains.
Bearish scenario:
Nonetheless, there is a likelihood that prices can break downward as well. Short entry will be based on the purple trend line. The purple zone marks the 5% false-breakout zone before entering short.
Once prices hit the yellow zone, short entry can be made, TP outside of the yellow zone, as there is support at the $7700 level.
PayPal, Venmo to Roll Out Bitcoin buying and Selling (rumor)
Fintech giant PayPal plans to roll out direct sales of cryptocurrency to its 325 million users, according to some sources. Currently, PayPal can be used as an alternative means for withdrawing funds from exchanges such as Coinbase, but this would be a first in terms of offering direct sales of crypto.
“My understanding is that they are going to allow buys and sells of crypto directly from PayPal and Venmo,” a well-placed industry source told CoinDesk. “They are going to have some sort of a built-in wallet functionality so you can store it there.”
It is unclear which or how many cryptocurrencies would be available. However, the most likely ones will be of course Bitcoin (BTC) and Ethereum (ETH). This rumour has made a lot of people Bullish with most tokens above 5% up compared to the previous week.
PayPal declined to comment on the plans.
Supply of the USD-backed stablecoin has quadrupled
Tether’s volume on decentralized lender platform Compound has soared as traders try to maximize the amount of COMP they receive. according to coindesk.
Data from Compound shows the supply of the USD-backed stablecoin has quadrupled from roughly $43.7 million at the start of the week, to over $224 million on Friday. This time last week, USDT supply had just about crossed the million-dollar mark.
With 2,000 suppliers (lenders) and just over 400 borrowers, USDT one of the largest and most active lending markets on the Compound protocol. For comparison, the supply for USDC, another stablecoin, is currently just under the $170 million mark — although the number of lenders is far higher at over 5,500.
“USDt’s growth on Compound has been faster than the growth of any other asset in the protocol, by multiples,” said Calvin Liu, Compound’s strategy lead, in a statement.
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